Two Companies Report Major Catalysts

Source: Ron Struthers for Streetwise Reports   02/06/2019

Ron Struthers of Struthers’ Resource Stock Report looks at two small-cap companies that have announced major developments.

Markets continue to rally and the S&P 500 closed at 2,737 yesterday, well into my resistance area. I expect a pullback or correction soon, as it is highly unlikely the market could punch through this resistance, especially on its first attempt. That said, anything is possible these days.

Huge news with Greenbriar this morning, time to back up the truck

Greenbriar Capital Corp. (GRB:TSX.V; GEBRF:OTC) Recent Price CA$0.87

Entry Price – $1.15 Opinion – Strong Buy to $1.20

The reason we first bought this stock was a belief that Puerto Rico in its condition would have to build the Montalva project—it made no sense to do otherwise. Today we got the first news that it is going to happen.

Greenbriar announced that the Puerto Rico Electric Power Authority (PREPA) has communicated to Greenbriar, through Luis Baco that it wants to re-open negotiations to move forward the Montalva Project, the company’s 100 MW solar/30MW battery powered energy project.

The shovel-ready project, when built out, will be the largest renewable energy project in the Caribbean. Generating 100% renewable energy, the project will greatly reduce emissions on the island and will save PREPA customers between $1 and $2 billion in energy savings over the 25- to 35-year lifespan of the project. In addition, it will add 900 direct jobs during the construction phase and over 1,000 indirect jobs will be created for suppliers, transport, accommodations, etc. The $305 million project will be located in, and provide substantially to the tax base of, the municipalities of Guanica and Lajas.

Jeff Ciachurski, CEO of Greenbriar states, “We have always believed this is a world class project, and we look forward to working with PREPA to getting it done. It will give PREPA what it needs most…affordable, safe and reliable clean energy for the citizens of Puerto Rico.”

As a reminder, this project will generate over US$50 million in annual revenue to GRB. The market cap of GRB is about C$20 million with the stock at $1.00. Ridiculously cheap and don’t forget the huge progress Greenbriar has made with RealBloq.io, that went live a few days ago.

GRB’s RealBloq.io platform is now live and collecting revenue from branches of Title Security and Landmark Title. Rollout to additional branches will occur over the coming weeks, and many additional title companies are in negotiations to come on-line in short order. RealBlock provides a secure platform to communicate wire instructions with real estate buyers, sellers and other designated stakeholders during the closing process. RealBlock is setting a goal of 60,000 transactions per month (US$14 million) annualized by February, 2020. This goal will not be linear, but rather weighted toward the 12-month period. The company will provide guidance updates accordingly on this forecast.

Tommy Sullivan, CEO of Title Security, stated: “Our escrow officers are very excited about the technology. As wire fraud incidents continue to escalate, the need to secure the exchange of documents and communications between buyers, sellers and others involved in real estate transactions are more crucial than ever. It’s often the biggest financial transaction of their lives, and we want to do everything we can to ensure it works as it should. RealBloq is the new standard of care in the title industry.”

The stock is at a strong support level, a triple bottom, so downside looks small. One might not be able to buy at this level because it may open strong on the news, so I have it at a strong buy to $1.20.

Ron Struthers founded Struthers’ Resource Stock Report 23 years ago. The report covers senior and junior companies with ample trading liquidity. He started his Millennium Index of dividend stocks in 2003 – $1,000 invested then was worth over $4,000 end of 2014 and the index returned 26.8% in 2016. He retired from IBM after 30 years in customer service, systems and business analyst, also developing his own charting software. He has expertise in junior start-ups and was a co-founder of Paramount Gold and Silver.

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1) Ron Struthers: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Greenbriar Capital and Smartcool Systems. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company currently has a financial relationship with the following companies mentioned in this article: Greenbriar Capital and Smartcool Systems are advertisers at playstocks.net. Additional disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
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( Companies Mentioned: GRB:TSX.V; GEBRF:OTC, SSC:TSX.V; SSCFF:OTC; R3W:FSE, )